Business, 14.07.2020 01:01 waves2114

Virginia owns 100% of Goshawk Company. In the current year, Goshawk Company sells a capital asset (held for three years) at a loss of $40,000. In addition, Goshawk has a short-term capital gain of $18,000 and net operating income of $90,000 during the year. Virginia has no recognized capital gain (or loss) before considering her ownership in Goshawk. Complete each lettered item below, outlining how much of the capital loss may be deducted for the year and how much is carried back or forward.

a. If Goshawk is a proprietorship, only $ long-term capital loss can be deducted in the current year. The remaining $ net capital loss is carried and then Correct 3 of Item 1.

b. If Goshawk is a C corporation, only $ long-term capital loss can be deducted in the current year. The remaining $ net capital loss is carried and then of Item 2.

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Virginia owns 100% of Goshawk Company. In the current year, Goshawk Company sells a capital asset (h...

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